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Dyno Nobel, the Norwegian explosives company being sold by private equity owner Industri Kapital, has reported a 25% boost in pre-tax profits to $65m (â¬54.1m) for the six months to June 30. It is expected to be sold for about $1.5bn.

A spokeswoman for Industri Kapital said the next round of bids for the company are due by the end of August. She said Industri Kapital would review all the options including a sale or refinancing in mid-September.

Orica Mining Services, an Australian explosives company, has been mentioned as a possible trade buyer although a combined Orica Dyno Nobel operation could fall foul of competition regulators, according to private equity sources.

Industri Kapital bought Dyno Nobel in August 2000 for an enterprise value of about $1.2bn.

In May 2003, it merged the firm with US explosives group Ensign-Bickford to create the world's second-largest explosives group with operations in 36 countries and annual revenues of $1.3bn.